L'Oreal, the world's largest cosmetics group is to buy Britain's The Body Shop, a retail specialist in beauty cosmetic ethically sourced products, for £652mil cash.
The company said the acquisition would not have an impact on the French's beauty cosmetics group's earnings this year but would start contributing to profits thereafter. This signified Loreal venture into another value chain of beauty and cosmetic industry : Retailing.
Non of the current brand under Loreal specialize in beauty and cosmetic retailing.
Based on corporate culture of L'oreal which usually retain the founder like Shu Uemura and Kiehl's. L'Oreal said it planned to operate the British company as a separate business and founder Anita Roddick would retain her current role as consultant to Body Shop.
Body Shop, which generated revenues of £419mil in the year to Feb 21, was a huge success in the 1980s but struggled to expand in the United States and suffered from mounting competition from rivals jumping on to the bandwagon. It is now back on its feet with more than 2,000 stores in 53 countries but issued a profit warning in January after weaker-than-expected sales.
L'Oreal said it had received irrevocable undertakings and had been granted a call option, which together represented 42.6% of Body Shop's capital.
The French group said its 300p-a-share offer represented a premium of 34.2% to Body Shop's closing mid-market price of 223.5p a share on Feb 21, the last day before speculation of a possible bid for Body Shop.
L'Oreal's offer is conditional on receiving regulatory clearance. – Reuters
In Malaysia, Body Shop franchise holder Kejora Harta take over bid by Bolton is expected to completed soon. Kejora Harta result show a strong growth from it Body Shop division.
Competitor of Body Shop including : Shins in Malaysia, Sasa in Hong Kong and House of Rose in Japan
Tag: Cosmetic : Beauty :Malaysia: Stock Market
:Health & wellness
